New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-09-10
DANSVlLLE'S BROKEN BANKS.
HEAVY LIABILlrIEs AND NO ASSETS
!, AT WASH

INGToN-How POOR PEOPLE WERE vICTIMIzED
[FRoM SPECIAL CORRESPONDENT OF THE rRrBUNEI
DAysvILtE SEPT T." This place seems to be q
kind OF cradle OF Napoleons of Finance" remarked
prominent citizen to-day and recent events furnish
ample 70 indstion for the statement Ferdins nd Ward
was born not tar from here; and his method OF con-
Quoting ban king business so as to bring ABOUT
collapse with large liabilities and no assets appears
to be the tavore one in Dansyils. Three years ago
the citizens were startled by the failure OF tho Bank
OF Dsnsvlle. owned by the Bradner family, and now
the only remaining bank, that owned by the Faulkner
family, has gone the same way.
The first failure swept away about 100000 OF the
earnings of the townspeope and Ward himself could
not have done the work better there proved to be
practically assets. The money OF widows and
orphans well as that OF the business men disap-
peared one knew where. What brought about
the failure was not disclosed. but the hank officials
have managed to live in good stys ever since. They
were indicted as they continued to receive deposits
long after the banks insolvency, according to its
books But only President Brsdner has yet been
tried. He convicted and sentenced to State
Prison. and for a few days was actually behind the
iron bars. But he had abundance OF money with
which to employ able counsel, and like SJake"
Share, he managed in that way to get stay pending
an appeal for a trial. The General Term decided
against him, but the is still pending before the
Court of Appeals, and In the meantime President
Bradner lives in Dansville In tine STYLE driving out
daily while his associates not yet been tried.
The laws delay In dealing with the men who
Quilted" the Bank of Dansvls appears to have
contributed largely In bringing on the heads OF the
people here snother similar disaster. The Bradners
and the Faulkners the two old and leading
families of the place, both supposed to be rich.
They have long dominated it in business and politics.
making it a Democratic town In politics, and owing
to their monopoly of business facilities exerted an in-
fuence which retarded its growth In commercial
sense. 1t was due to their perverse influence that
Dansvle il not the direct line of the Erie road to
Rochester instead Of on o small branch running
down from Avon and ending here. They had an
interest 10 the old canal which made 1t undesirable to
them to have railroad come this way. Manufactures
have been discouraged that it it were not tor the
Sanatorum, splendid fire. proof building the hill
side, accommodating 400 patients or guests, Dams
Vile would seldom be heard OF by the on tside world
The Bradners owned one oank ana the Faulkners the
other. Both have gone down In disgrace President
Bradner under the shadow of the State Prison aud
President Faulkner is wanted by the Sheriff, but
not be found and is reported to be In Canada
Up to this time except the bank officials
nd possibly the bank examiner Knows the full extent
of the disaster brought the place by the faure OF
the First National Bank owned by the Faulkners.
But il will probably reach 5000 900 If it does not
ceed that sun. AS to the assets, so tar as known
there none and the depositors as rule do not
expect to get ceLt. Two failures OF this kind in so
short tme in place OF 4.5OO inhabitants, sweep
ing out OF existence all its banking facilities might
DO expected bring disaster to many of its BUSINESS
men, but so far these has not been failure. Bat
there are man, cases OF great distress among poor
people Several employees OF the Sanatorium who
had tho savings OF years deposited in the bank lose
their all. A poor widow lost 81 200, all she had.
Another widow VINO had after years OF waiting. been
allowed pension had just received the arrears and
deposited it IN the bank. She OF course loses it ALL
though the officials knew when they received the
money that she woald never get it again. poor
An had Just sold his house and deposited the money,
and numerous GASES of the kind ate daily coming to
li,ht.
The circumstances conn ,cted with this failure are
almost an exact repetition OF The previous ono aud
leave no doubt that it expected by the Fauknes
There were for weeks, not to say months, OF
the weakness OF the bank, but the people put con-
fdenne In the statement OF its officials ana IN
rbe examinations conducted under the Contr0erof
the Currency at Washington. They we're grevously
sled by the department at Washington. and 1t Is
evident that it would far better to abolish the ex
aminatons conducted under Controller Trenholm II
they are untrstwvrthy as In this case and In that
of the Fidelity Bank at Cincinnati From the founda-
ton of the First National Bank in 1864 up to March
last it had depost 5000 OF the Canal sipkng
Fund Controller Cnapin withdrew this money near
Is six months ago because he DOUBTED The solvency
of the bank. And yet the examiner from Washington
came here alter the withdrawal OF that money anu re-
ported the bank as in good condition. The last pup
shed statement gave the condition OF the bank NJ the
close of bu, ness May ID, aud showed resources OF
Sl15 485 to meet $37,777 OF deposits subject to
check and 10 600 demand certificates OF deposit IL
now turns out that the deposits, instead OF being
$4,000 were ut the time of the failure about
5000 900 and the resources unknown quantity.
As the department at Washington has taken no
measures to institute criminal proceedings-the de-
positors having done all that has been done in that
direction the people here want to know II the wash
ington authorities think II no crime 10 swear 10 false
statements. James Faulkner swore 20 that statement
president and the names 81 Lester d. t
sworn statement directors Lester B taukner' VINO
since his effort TO boom Roswell L. Flower Tor
! han ha.r 1 ri In Sfafn
ono of the principal stockholders ana directors IN the
bank. lie asserts now that he disposed OF his stock
time ago to his brother ana tnat ne ela ny
not sign the last statement In that case some one
must have forged his name. But the people here do
not appear disposed TO let General Faulkner escape
| liability Notwithstanding these statements on his
p,rt lilo seems to have retained sufficient interest to
20 TO Washington to try and influence the appoint
| ment of a receiver, and Mr.. Getman, the Da1k ex-
amner no " here APT care to be hi warm friend.
Tine dsy the bank closed its doors mortgages were
recorded in the County Clerks office covering for
their full value all the property owned by President
Faulkner. Last September he gave mortgage Tor
$4,000 on part OF this property to James w. "ads
sDecai favor asked Mr. Wadsworth not TO record the
mortgage as 1t would hurt the bank, and gave his
void OF honor that he would that Mr. Wadsworth
wa. tully protected. Mr.. " ellsworth trusted Mr..
Faulkners honor Only to discover while absent IN the
West that President Faulkner mortgaged the same
nroperty for its full value to another person, which
oortr age was recorded ahead OF that gwen months
before to Mr.. Wadsworth. Some OF tue books oil the
bank oarted away at night after tne failure, snd
the index to the big ledger was found by the roadside
eut miles away, where it had dropped apparently
| by m,sohance. Numerous drafts were sold on New
| York hanks for weeks before the doors closed al
| though there were no funds there to meet these
drafts. which came back protested President Fauik-
ner assured the holders OF this protested paper that
was all right and that he had arranged LOT ample
funds wheel would arrive on Wednesday evening,
though the bank did not open its doors after that
time In that way he kept The bsnk open for days
at, er its drafts had been protested and nc persuaded
largo deposito-s to check their accounts as he
was ten vorarily short OF cash and IN tact did not
honor checks All this while he was getting IN more
money en- deposit paying out none, and whom APP
pnrently he had got everything he could the mort
cages we're recorded and the bank did not open ITS
doors gain.
When the people began to see how they had been
deudel they called meeting and sent q committee
oonsistir Of Dr. Lefingwell, OF the Sanatorum A:
o Bunuell and Mr. Campbell TO call on president
EanlLnnr at hi. hnnaa The committee was informed